J.P. Morgan Remains Bullish on The Wendy's Company (WEN)

The Wendy’s Company (NASDAQ:WEN) is one of the best small cap low volatility stocks to invest in. On August 11, analyst Rahul Krotthapalli from J.P. Morgan maintained a Buy rating on The Wendy’s Company (NASDAQ:WEN) and set a $13.00 price target.

The analyst based the rating on The Wendy’s Company’s (NASDAQ:WEN) stabilization and the potential improvement in its store economics, factors supported by attractive free cash flow yields.

Krotthapalli sees The Wendy’s Company (NASDAQ:WEN) as a value-oriented opportunity despite a challenging outlook and recent performance, expecting free cash flow yields of 6.6% and 8.4% for fiscal year 2026 and 2027, respectively.

Another key consideration supporting the analyst’s optimistic outlook is The Wendy’s Company’s (NASDAQ:WEN) focus on reducing capital intensity and reallocating funds for faster deleveraging or shareholder returns.

The Wendy’s Company (NASDAQ:WEN) operates, develops, and franchises a system of quick-service restaurants. The company’s operations are divided into the following segments: Wendy’s U.S., Wendy’s International, and Global Real Estate and Development.

While we acknowledge the potential of WEN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.